Unified Pension Scheme, After criticism of the new pension scheme i.e. NPS, the government has approved a revised pension scheme on Saturday, August 24. This scheme is being called Unified Pension Scheme (UPS). This scheme will be implemented from the next financial year i.e. 1 April 2025. In this scheme, retired employees will get 50% of their salary as pension. This pension will be based on the average salary of the last 12 months. But for this the employee must have completed 25 years of service.
Pension is guaranteed under UPS. Those who have opted for NPS will be allowed to switch to UPS from next year. On the other hand, NPS is a market-linked scheme in which your contribution is fixed but the returns depend on the market. Since the money in NPS is invested in the market, the pension amount is not fixed and keeps changing according to market fluctuations.
#BreakingNow: केंद्र सरकार ने UPS पेंशन स्कीम लागू की.. यूनिफाइड पेंशन स्कीम को कैबिनेट की मंजूरी मिली
👉बेसिक सैलरी का 50 % निश्चित पेंशन मिलेगी @rrakesh_pandey #BJP #UnifiedPensionScheme #Pension pic.twitter.com/fmhWQ9Ay32
— Times Now Navbharat (@TNNavbharat) August 24, 2024
Under NPS, the employee contributes 10 percent of his basic salary, while the government contributes 14 percent. The government’s contribution to UPS has increased to 18.5%, while employees will continue to contribute 10 percent of their basic salary and dearness allowance.
Employees contributing to NPS are eligible for tax deduction up to 10 per cent of their salary (Basic Dearness Allowance) under Section 80 CCD (1), subject to the aggregate limit of ₹1.5 lakh under Section 80 CCE.
Apart from this, one can claim additional deduction of ₹50,000 under Section 80 CCD(1B) over and above the limit of ₹1.5 lakh under Section 80CCE. Tax benefits under UPS are yet to be announced.
UPS is only for government employees who have opted for NPS, while private employees can also opt for NPS if their employer has adopted the contribution. Any Indian citizen between the age of 18 to 70 years can voluntarily enroll in NPS.
After the death of the employee, 60 percent of the pension will be given to the family members.
If an employee dies after retirement, his family will receive 60 percent of his pension. A lump sum amount (separate from gratuity) will also be given on retirement in UPS. It will be calculated as 10th of the basic pay and dearness allowance (DA) for every 6 months of service of the employee.
If the basic salary is Rs 40,000 then how much pension will you get?
If you are a government employee and choose the option of Unified Pension Scheme instead of New Pension Scheme and your average basic pay for the last 12 months is Rs 40 thousand, then after retirement under UPS, you will get a pension of Rs 20 thousand every month. If the employee dies and his monthly pension is Rs 20 thousand, then the family will get a pension of Rs 12 thousand.